Rizal Commercial Banking Corporation · PSE:RCB
Rizal Commercial Banking — Investor Presentation (September 2020)
35 slides from Rizal Commercial Banking's investor presentation, September 2020
Slide 1: Investor Presentation
Investor Presentation September 2020
Slide 2: Disclaimer
DISCLAIMER ANY INVESTMENT DECISION TO PURCHASE SECURITIES IN THE CONTEXT OF A PROPOSED OFFERING, IF ANY, SHOULD BE MADE ON THE BASIS OF THE FINAL TERMS AND CONDITIONS OF THE SECURITIES AND THE INFORMATION CONTAINED IN THE OFFERING CIRCULAR PUBLISHED IN RELATION TO SUCH AN OFFERING AND NOT ON THE BAS
Slide 3: Table of Contents
Table of Contents 1 Introducing RCBC 2 Economic Overview 3 Financial Overview 4 Strategic Initiatives 5 Recognition 6 Appendix - Financial Information 3
Slide 4: 1. Introducing RCBC
Investor Presentation September 2020 1. Introducing RCBC 4
Slide 5: RCBC is a leading financial services provider in the Philippines
RCBC is a leading financial services provider in the Philippines Incorporated in 1960, RCBC is the 7th largest private domestic bank in the Philippines by assets, with a market capitalization of Php31.94bn (USD0.66bn)1 and share price of Php16.502 . Member of the Yuchengco Group of Companies (YGC).
Slide 6: Investment Information
Investment Information Dividends Particulars 3Q 2020 Year Pay-out ratio per share Long Term Baa2 Ticker RCB 2020 0.56 20.00% Deposit Long Term Issued shares 1,935.63mn 2019 0.45 17.02% IDR - Stock Price 16.50 2018 0.62 20.02% Senior Baa2 Php 31.94bn Unsecured Market Cap 0.55 16.53% ( USD0.66bn ) 201
Slide 7: Yuchengco Group of Companies
Yuchengco Group of Companies • RCBC is a member of the Yuchengco Group of Companies (YGC), one of the premier business conglomerates in the Philippines. • The group is engaged in a wide range of financial and non-financial services. The synergies among these companies allow customers to access a wid
Slide 8: Ownership Structure
Ownership Structure Cathay Life Insurance Pan Malayan Management and 23.35% Investment Corp. (PMMIC) & Affiliates of the Yuchengco Group of Companies (YGC) International Finance 52.69% Corporation 5.58% Public Float 18.38% 8
Slide 9: Comprehensive and Diversified Business Platform
Comprehensive and Diversified Business Platform RCBC Forex Brokers RCBC Capital Rizal Micro Bank RCBC Leasing RCBC Intl Finance Corporation Corporation Microfinance Thrift Leasing Hong Kong Financing Foreign Exchange Investment Bank Bank Company Company Broker RCBC Securities RCBC Bankard RCBC Renta
Slide 10: Key Milestones
Key Milestones 1960-1970s 1980-1990s 2000s 2010s September 1960 1985 2000 2011 RCBC was Continental Illinois Bank Expanded its credit card Formed alliances with IFC and CVC Capital Partners incorporated and sold its shareholding to UFJ business with the purchase Formed Bancassurance partne
Slide 11: Branch and ATM Network
Branch and ATM Network RCBC’s Branch distribution by Region September 2020 CAR I: Ilocos 3 13 6 II: Cagayan Valley Region III: Central 38 IV-A: Calabarzon Luzon NCR: Metro Manila 198 73 6 V: Bicol Region IV-B: Mimaropa VIII: VI: 6 Eastern Western Visayas 6 Visayas 25 28 VII: Central Visayas X: North
Slide 12: 2. Economic Overview
Investor Presentation September 2020 2. Economic Overview 12
Slide 13: The Philippines remains to be in a recession
The Philippines remains to be in a recession 3Q 2020 GDP contracted by -11.5%, better than the record contraction of -16.5% in 2Q 2020 FORECAST Philippine GDP growth rate • GDP data still improved from the worst levels at the height of the COVID-19 -9.0% to -10% lockdowns (mostly at ECQ/MECQ) in 2Q
Slide 14: Slow but steady economic recovery after the COVID-19 lockdowns
Slow but steady economic recovery after the COVID-19 lockdowns September Data Peso exchange rate appreciated versus the US -16.5% Imports dollar by 1.335 pesos or 2.68% to close at 48.495 in 3Q 2020; also appreciated year-on- year by 3.335 pesos or 6.4%. 2.2% Exports Net Foreign Portfolio -US$494mn
Slide 15: Slow but steady economic recovery after the COVID-19 lockdowns
Slow but steady economic recovery after the COVID-19 lockdowns Other Relevant Economic Data (September 2020) -8.4% -6.1% Peso exchange rate appreciated versus the US dollar by 1.335 pesos or 2.68% to close at 48.495 in 3Q 2020; also appreciated year-on- Manufacturing Volume Manufacturing Volume of y
Slide 16: 3. Financial Overview
Investor Presentation September 2020 3. Financial Overview 16
Slide 17: RCBC Sustains Core Income Growth, Hikes Provisions
RCBC Sustains Core Income Growth, Hikes Provisions Amounts in PHP Millions YTD Sep '20 YTD Sep '19 Change % Change SELECT INCOME STATEMENT DATA Net Interest Income 19,659 16,383 3,276 20.0% Non-Interest Income 9,695 11,347 (1,652) -14.6% Operating Expenses 16,371 16,280 91 0.6% Provision for Probabl
Slide 18: Historical Financial Performance
Historical Financial Performance Amounts in PHP Billions OPERATING EFFICIENCY PROFITABILITY 30 76.1% 70.9% 73.2% 100% 60.7% 55.8% 80% 60% 40% 20 20% 0% 7 6.4% 6.7% 6.5% 8% 21.8 -20% 5.8% 6.1% 10 17.4 17.8 19.4 16.4 -40% 6% -60% 6 -80% 0 -100% 4% 2016 2017 2018 2019 YTD Sep 5 '20 2% Operating Expense
Slide 19: Interest Income growth driven by loan expansion & higher margins
Interest Income growth driven by loan expansion & higher margins Amounts in PHP Millions Diversified and high quality customer loan portfolio GROSS INCOME 0% Consumer 0% 30% Corporate 8% 31% 53% 9% 9,695 413B 53% 452B 11,347 15% SME 16% 17% 16% Sep 2019 Sep 2020 Other Income 19,659 1,153 16,383 20%
Slide 20: Consolidated Income Statement
Consolidated Income Statement Amounts in PHP Millions YTD Sep '20 YTD Sep '19 Change % Change Interest Income 28,261 28,057 204 0.7% Interest Expense 8,602 11,674 (3,072) -26.3% Net Interest Income 19,659 16,383 3,276 20.0% Other Income 9,695 11,347 (1,652) -14.6% Trading Gains and Forex 6,304 7,082
Slide 21: Consolidated Balance Sheet
Consolidated Balance Sheet Amounts in PHP Millions Sep 2020 Sep 2019 Change % Change Cash/Due from BSP & Other Banks 118,150 80,482 37,667 46.8% Investment Securities 66,132 108,628 (42,496) -39.1% Loans (net of Interbank) 445,226 410,006 35,220 8.6% Other Assets 101,495 71,559 29,935 41.8% TOTAL AS
Slide 22: Consolidated Key Financial Indicators
Consolidated Key Financial Indicators Amounts in PHP Millions Sep 2020 Sep 2019 Change PROFITABILITY Annualized ROE 6.2% 7.3% -1.1% Annualized ROA 0.7% 0.9% -0.2% Net Interest Margin 4.4% 3.9% 0.5% COST EFFICIENCY Cost-to-Income Ratio 55.8% 58.7% -2.9% ASSET QUALITY Net NPL Ratio 3.8% 2.0% 1.8% NPL
Slide 23: 4. Strategic Initiatives
Investor Presentation September 2020 4. Strategic Initiatives 23
Slide 24: Strong deposit base with a 55% CASA Mix, boosted by cash management initiatives
Strong deposit base with a 55% CASA Mix, boosted by cash management initiatives • The Bank has a diversified depositor base, from both the retail and corporate segments. 273 250 217 231 223 205 207 • The bank continues to focus on building its 171 193 148 customer base by improving our sales product
Slide 25: Well-diversified loan portfolio, driven by the consumer segment
Well-diversified loan portfolio, driven by the consumer segment Total Customer Loans In Php Billion • The Bank will continue to forge strategic partnerships 445 with major car dealerships and real estate developers 434 to support consumer loan growth 389 1 1 353 1 30 31 • RCBC leverages on its wide
Slide 26: Digital initiatives yield positive results
Digital initiatives yield positive results RCBC undergoing Digital Transformation D I G I TA L T R A N S F O R M AT I O N MILESTONES +196% Digital Banking enrollment +494% Growth in Instapay transfers Mobile Banking Financial Inclusion P4.1Bn ATM Go transaction value 3.0 M Diskartech app downloads i
Slide 27: The Bank is a leader in Green and Sustainable Finance
The Bank is a leader in Green and Sustainable Finance • RCBC is the first Philippine universal bank to issue green and sustainable financing instruments under global standards ESG rating A RCBC Sustainability Bond RCBC Sustainable Loan Portfolio Php8B ($160M) 30 September 2020 Socioeconomic Sustaina
Slide 28: 5. Recognition
Investor Presentation September 2020 5. Recognition 31
Slide 29: RCBC named Best Digital Bank in the Philippines
RCBC named Best Digital Bank in the Philippines 32
Slide 30: Recognized by multiple award-giving bodies
Recognized by multiple award-giving bodies Best Commercial Bank in the Best SME Bank - 2018 Best Card Offering-Philippines - Syndicated Loan of the Philippines - 2017 Best for Credit Derivatives - 2016 2018 Year – RCBC Capital Best Practices award- Best Banking Group in the Best Market Coverage –201
Slide 31: 6. Appendix
Investor Presentation September 2020 6. Appendix
Slide 32: Consolidated Income Statement
Consolidated Income Statement Amounts in PHP Billions YTD Sep 2016 2017 2018 2019 '20 Net Interest Income 15.71 18.02 20.49 22.37 19.66 Total Non Interest Income 7.11 7.10 6.01 13.49 9.69 Gross Income 22.82 25.12 26.50 35.86 29.35 Provision for Loan Losses 1.77 2.16 1.90 7.40 7.22 Income before Oper
Slide 33: Consolidated Balance Sheet
Consolidated Balance Sheet Amounts in PHP Billions 2016 2017 2018 2019 Sep 2020 Cash/Due from BSP/Due from Other Banks 107 93 94 123 118 Loans Arising From REPO 8 10 10 6 14 FVPL/FVTCI 24 13 30 60 45 Held to Maturity Investments 52 60 89 101 21 Interbank Loans and Receivables 1 0 10 19 60 Loans (net
Slide 34: Key Financial Ratios
Key Financial Ratios 2016 2017 2018 2019 Sep 2020 Return on Average Capital Funds 6.4% 6.7% 5.8% 6.5% 6.2% Return on Average Assets 0.8% 0.8% 0.7% 0.8% 0.7% Net Interest Margin 4.1% 4.3% 4.0% 4.0% 4.4% Cost-to-Income Ratio 76.1% 70.9% 73.2% 60.7% 55.8% CASA to Total Deposits 58.1% 55.9% 54.4% 54.7%
Slide 35: Thank you.
RCBC Thank you.
Rizal Commercial Banking Corporation (RCBC) — Investor Presentation (September 2020) on 6ix